SC orders forensic audit of real estate firm Unitech Ltd

The Supreme Court has ordered a forensic audit of embattled real estate firm Unitech Ltd, which has failed to deliver flats to thousands of home buyers on time

A Supreme Court bench, headed by justice DY Chandrachud, on December 7, 2018, asked accounting firm Grant Thornton to carry out a forensic audit of Unitech Ltd and all its subsidiary companies since January 2006. Advocate Brajesh Kumar, appearing for some of the home buyers who have not received possession of flats booked with Unitech, said the court has asked Grant Thornton to give its preliminary report by December 14, 2018. The apex court has also asked the auditor to place before it, the draft terms of audit and timeframe within which it would be completed.

See also: SC orders the construction of 514 flats of Unitech, from auctioned property funds

On July 5, 2018, the top court had asked a panel headed by former Delhi High Court judge SN Dhingra, to proceed with the auction of Unitech Ltd’s unencumbered properties at Agra and Varanasi in Uttar Pradesh and Sriperumbudur in Tamil Nadu, to refund money to the home buyers.

The court had set up a three-member panel, for the expeditious auction of over 600 acres of land of the real estate firm, for refunding money to home buyers who did not want possession of their homes or flats.

Sanjay Chandra, the managing director of Unitech Ltd, is seeking interim bail from the apex court, after the Delhi High Court, on August 11, 2017, had rejected the plea in a criminal case lodged in 2015 by 158 home buyers of Unitech projects – ‘Wild Flower Country’ and ‘Anthea Project’ – situated in Gurugram in Haryana.



Apex consumer commission directs Unitech to refund over Rs 18 crores to home buyers’ association

The National Consumer Disputes Redressal Commission has asked Unitech to refund over Rs 18 crores, along with 10 per cent interest, to a home buyers’ union for failing to hand over the possession of apartments at its Unihomes-3 project in Noida

Novembe 8, 2018: The National Consumer Disputes Redressal Commission (NCDRC) has asked real estate giant Unitech Limited to refund over Rs 18 crores, to members of a home buyers’ union, for failing to hand over the possession of apartments. The apex consumer commission has asked the company to refund, within six weeks, the amount of Rs 18,84,19,025 deposited by the members of the Unihomes-3 Buyers Union, along with 10 per cent interest, from the date of deposit till the money is returned.

The association comprised of 33 individuals, who had purchased their flats from Unitech in the project called Unihomes-3 in Noida, Uttar Pradesh. “Refund the entire deposited amount paid by the members of the complainant within six weeks from today (November 6, 2018) along with simple interest of 10 per cent per annum from the date of payment of respective amount, till the realisation of the amount,” said the commission. It also asked the firm to pay Rs 10,000 as litigation cost to the association.

See also: Hyderabad HC orders Telangana government, TSIIC, to pay Rs 660 crores to Unitech

The housing project was launched in 2010, with an assurance to hand over apartments within 30 to 36 months from the date of signing of the agreement. The association members had individually applied for different flats in the projects and deposited 90 to 95 per cent of the total consideration amount. However, even after the expiry of the stipulated period, the possession of the flat was not delivered, the association claimed, in its plea.